Hair and makeup part and parcel of Australia Post life

Australia Post corporate credit cards were routinely used to pay for the hair and make-up services of executives, company insiders claim.

Australia Post chief executive Christine Holgate during Senate estimates in Canberra. Picture: NCA NewsWire / Gary Ramage

Australia Post corporate credit cards were routinely used to pay for the hair and make-up services of executives, company insiders claim.

Christine Holgate, who has stood aside as chief executive pending an investigation into the use of corporate credit cards, also allegedly had a personal driver to take her to and from work and occasi­onally collect her from her holiday home, at the company’s expense.

Other expenses charged to the corporate credit card included office­ flowers, luxury overseas hotels­, lavish dinners and drinking sessions, The Weekend Australian has learned.

Australia Post disclosed on Friday that the four Cartier watches gifted to employees in 2018 to thank them for securing a lucrative contract did not cost $12,000 in total, as originally claimed, but $19,950.

The departments of Commun­ications and Finance are looking at irregular use of taxpayer money by Ms Holgate, board members and other Australia Post executives, as well as some “excessive” charges on the chief executive’s credit card.

One former Australia Post executive said hairdressing appointments by executives were “routinely paid for” on the corporate credit card, a point of contention inside the company.

“I was gobsmacked at what people were spending money on, by the largesse,” they said. “Should the independent investigation be expanded to credit card use across the organisation, the misuse will be endemic and systemic. The use of private chauffeur-driven limos wouldn’t pass the pub test anywhere.”

It is understood the hairdressing appointments were justified as being necessary for public events or media interviews.

A second internal Australia Post source said they were also aware of executives having their hair and make-up done.

“There would have been instance­s where if you’re doing a corporate video that justifies it,” they said. “I can understand some people thinking: ‘I have to go to five functions for work.’ ”

One major concern was Ms Holgate’s use of a driver in Sydney­ to the Australia Post offic­es in Redfern from her home in Sydney’s north shore or even her holiday home in Pearl Beach, on the central coast.

In response to questions about the use of hair and make-up ser­vices being paid for on the corporate credit card, an Australia Post spokeswoman said it was “not appropriat­e to respond” while the federal government’s investigation was taking place.

Separately, the company said in a statement that a review of documents had shown that the “board was not asked to approve or note the purchase of those Cartier watches”.

“The board was further advised today that these papers and minutes do not record any subsequent reference to the purchase,” the statement reads.

Despite this, The Weekend Australian has obtained a handwritten card sent to one of the four employees who received the Cartier watch, signed by Australia Post’s then chairman John Stanhope.

The cards, also signed by Ms Holgate, are expected to form part of her explanation of the purchases: that the decision was ultim­ately made by the chairman under a culture he established.

The watches were gifted to senior employees Gary Starr, Deanne Keetelaar, Anna Bennett and Greg Sutherland in November 2018 for finalising the $66m Bank@Post deal, which allows Australians to access banking services­ at Australia Post.

There was a high level of animosity among executives at the upper echelons of Australia Post. It is understood internal feedback has found Ms Holgate to be well liked among frontline em­ploy­ees, but there has been a culture of leaking at the executive level.

In particular, some senior staff were angry they did not receive bonuses this year — during the coronavirus pandemic — when Australia Post’s revenue was strong.

There has been a revolving door of senior management and executive team members over the past three years of Ms Holgate’s tenure.

Among the senior executives who left are former: chief financial officer Janelle Hopkins, chief operating officer Bob Black, ser­vices executive Philip Dalidakis, international services executive Annette Carey, chief digital officer Andrew Walduck, and shareholder and regulatory affairs executive Andrew Walduck.

Ms Holgate replaced Ahmed Fahour as chief executive in October 2017. His time at Australia Post ended in controversy over his salary, which rose to $6.8m in 2017, with a final take-home pay that year of $10.8m.

The investigation will also examine the broader conduct of the board and executive, with government sources insisting that board members, some of whom are former Coalition MPs and party figures, would be in the spotlight.

Australia Post confirmed Ms Holgate would continue receiving her salary — worth $27,000 per week — while she is stood aside during the investigation.

If she does not resign before it is completed, it will be up to the board and Communications Minister­ Paul Fletcher to decide her future. The Morrison government had sought legal advice as to whether Ms Holgate has to be paid while she is stood down.

Additional reporting: Jared Lynch